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Here's What to Expect from Intel's (INTC) Q4 Earnings Thursday

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Intel (INTC - Free Report) saw its stock price dip slightly during regular trading Wednesday, one day before the chip powerhouse is set to release its fourth quarter financial results. So, let’s check out what investors should expect from Intel after the closing bell Thursday.

Quick Overview

Wall Street will be watching Intel closely because the world’s largest semiconductor manufacturer helps to gauge the market’s overall health, which is increasingly important after reports earlier this week said that China’s economy grew at its slowest pace since 1990. Meanwhile, Alibaba (BABA - Free Report) , Apple (AAPL - Free Report) , and other firm’s quarterly outlooks appear to show signs of a slowing Chinese economy as well (also read: What to Expect from Alibaba Earnings Amid Chinese Economic Slowdown).

Fellow chip firms Texas Instruments (TXN - Free Report) , Nvidia (NVDA - Free Report) , and Advanced Micro Devices (AMD - Free Report) will also help paint a picture of the market’s overall health over the next few weeks. With that said, investors should pay attention to any updates on Intel’s 10-nanometer-based systems, which are due out by the 2019 holiday season.


Q4 Estimates

Intel’s Q4 revenues are projected to climb 11.5% to reach $19.01 billion, based on our current Zacks Consensus Estimate. This would represent a slowdown from Q3’s 19% growth.

More specifically, Intel’s Client Computing revenues are expected to jump roughly 9.9% to hit $9.841 billion, based on our NFM estimates. Investors should note that Client Computing revenues surged 15.5% in Q3.

Meanwhile, INTC’s Data Center business revenues are projected to soar 23.5% from $5.582 billion in the year-ago quarter to touch $6.894 billion. Last quarter, DC unit revenues climbed roughly 26%. Lastly, Intel’s IoT division is expected to reach $790.75 million, which would mark a 10% decline from the year-ago period’s $879 million.

Moving onto the bottom end of the income statement, Intel’s adjusted Q4 earnings are projected to surge 12.9% to hit $1.22 per share. We should note that this bottom-line estimate marks a downturn from Q3’s 39% expansion and Q4 2017’s 37% climb.

Bottom Line

Intel is a Zacks Rank #3 (Hold) at the moment that sports an “A” grade for Growth and a “B” for Value in our Style Scores system. Intel is expected to report its Q4 financial results after the market closes on Thursday. Make sure to come back to Zacks for a complete breakdown of INTC’s actual Q4 results.

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